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Daily Record
Lifestyle
Linda Howard

New petition calls for DWP benefits to increase in line with current rate of inflation

A new petition is calling on the UK Government to increase benefits in line with current levels of inflation to help “stop the cost of living crisis becoming a poverty emergency”.

Benefits delivered by the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) that are linked to inflation, increased by 3.1% on April 11 along with the Basic and New State Pension payment rates, following the temporary suspension of the Triple Lock rule.

The uprating is determined by the September 2021 Consumer Price Index (CPI), which was 3.1%, however, inflation has been rising due to the current cost of living crisis and has now soared to a 40-year high of 9% for April.

The shortfall prompted songwriter and activist, Simon Baum, to create the petition on the petitions-parliament website at the end of March - when inflation was at 6.2%.

He explained how rising inflation will “hit the poorest families hardest and failing to increase benefits to match will push more people into poverty”.

The petition has received more than 6,000 signatures of support so far and at 10,000 will satisfy the threshold which triggers an official response from the UK Government.

The uprating in line with inflation is something Labour MP Mike Amesbury, Shadow Minister for Housing, Communities and Local Government, also put to the DWP.

He asked the Secretary of State for Work and Pensions, Therese Coffey, if there will be an increase to Personal Independence Payments (PIP), Disability Living Allowance (DLA) and Universal Credit in line with inflation.

In a written response on April 25, Minister of State for Disabled People, Work and Health, Chloe Smith MP, said: “The Secretary of State is legally required to conduct an annual review of benefit rates to determine whether they have retained their value in relation to the general level of prices.

“We have used the same approach since April 1987 of up-rating benefits based on the relevant inflation index in the 12 months to the previous September and since 2011 the preferred index has been the Consumer Price index. We will spend over £64 billion this year on benefits to support disabled people and people with health conditions”.

Ms Smith continued: “Personal Independence Payment and Disability Living Allowance are non means–tested and non-contributory, thus they are paid regardless of any income or savings and were not subject to the benefits freeze. They are currently paid at between £24.45 and £156.90 a week, tax free.

“In Universal Credit the limited capability for work and work-related activity amount is currently £354.28 a month.”

Read the ‘Increase benefits in line with current levels of inflation’ petition in full here.

To keep up to date with any updates with this petition, join our Money Saving Scotland Facebook group here, follow Record Money on Twitter here, or subscribe to our twice weekly newsletter here.

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